AMD’s Xbox deal worth more than $3 billion

AMD stands to generate more than $3 billion in revenue on its custom APU deal with Microsoft. AMD has managed to win all three console designs this time around, so it could make a pretty penny.

The value of the deal was leaked by Ben Allen, an AMD chap in charge of "business transformation". Since it is a multi-year deal, AMD should generate the revenue over the next five years or so. At the moment, AMD’s revenue is just north of $1 billion.

In addition to the Xbox One, AMD stands to generate heaps of cash on the PS4 and Wii U as well. Although we are talking about huge volumes, margins in the console chip market aren’t that big, but in any case the wins bode well for AMD.